Continuing where the last entry left off, I put in an offer on a different home, although just across the street. Also a foreclosure, but this property is owned by a different bank. It’s been listed since October of 2013, and every 2 months they drop the listed price by about 10%. I had an idea of what I thought I would pay for this one, but my realtor convinced me to make an offer significantly lower. And I’m glad he did. I submitted my offer with the realtor after work on a Wednesday evening, I had a counter offer before noon the next day. Their counter was even below the price I originally had in mind, so I accepted! I know what you’re thinking, I thought it also: why not make a second offer and see what they say? But we’re only talking about $2,000 difference, and I didn’t want to get greedy and lose this house to the next person in line like I did the first one.
Then it was a waiting game to get my contract. I had to initial 12 pages of “addenda” to the offer, basically a bank novel to help me understand that “as-is” really means “as-is.” One week later, I had my contract and took it to the bank. I was already pre-approved for a mortgage several months before. I did this for 2 reasons: first of all, I wanted to know what dollar amount the bank would let me borrow for a home, because there is a very precise calculation they do comparing your debt to your income. Secondly, if I did find the right house, I would need a bank financing letter in order to submit an offer. Since I already did the first step, the bank took my contract and I signed the mortgage application. The funny part was when the banker (super nice guy, btw) says, “how much?” The look on his face was priceless. I had already explained to him in our first conversation that I was looking for a fixer-upper. Apparently he didn’t know just how much of a ‘fixer’ I was after. The look on his face said, “Are you sure you know what you are getting yourself into?” YEP! But I was prepared for that expression. I explained that I’ve tackled home improvement projects for the past several years, and have done woodworking for even longer. To convince him further (not that it was necessary, but I don’t shy away from showing my work) I brought along a small album of before and after photos including inside, outside, and a major bath redo. He seemed impressed, not so much by the work itself, but that he had no idea I was a DIY guy.
So now its just waiting on the bank to confirm all of my application details, hire an appraisal on the home, run a title search on the property, and then hopefully schedule the loan closing. On or before April 18, just over a month away! Being under contract is such a relief. I’ve been making an inventory of the things I will need. I can start picking up household items when I see them on sale or at yard sales this spring. I’m Craigslisting every day to find nice used appliances. And I can’t stop Pinteresting ideas for every room. Have you searched “Craftsman Bungalow” on Pinterest? You don’t know what love is until you do.
My little bungalow (yes, I am already calling it mine; I might also drive down the street at least every other day to see what the neighbors are up to and how the house looks as the snow continues to melt) – anyway, it has 2 bedrooms, 1 bath, kitchen, living room, dining room, and small laundry area at the back entrance. Also a 1 car garage with stone drive, back yard shed, and pretty good size yards in front and back. All the woodwork and dining room built-ins are painted, but they look original and otherwise in great shape. Hardwood floors under the old carpet, though needing refinished. The windows look original to the house, and badly need replaced. The roof also looks terrible; although there’s no water damage to the ceilings, it looks like just a matter of time until it fails. The bathroom is terrible; plywood on the floor, extremely soft all around the fixtures from lots of water damage. And the bath layout overall looks cramped, I’ve already been sketching ideas for moving either the vanity or the toilet. But I cannot wait to get started! And I do plan to document every room and the outside with lots of “before” pictures so I can enjoy looking back and seeing how much change I’ve created over the next few years.
Up and Adam [Ries] 